Is Drumright, Oklahoma Good for Airbnb Investment?

To start an Airbnb in Drumright, Oklahoma, begin by researching local regulations through the Drumright City Hall (918-352-2332) as the city currently has minimal short-term rental restrictions but may require a business license ($25-50 annually). Contact Creek County for any county-level requirements and ensure compliance with Oklahoma state tax obligations including sales tax registration with the Oklahoma Tax Commission. Find a suitable property by searching local real estate listings, considering properties near downtown Drumright or along historic Route 66 for tourist appeal, with average home prices ranging $40,000-80,000. Obtain necessary permits including a business license from Drumright City Hall, fire safety inspection if required, and register for Oklahoma sales tax collection (currently 4.5% state plus local rates). Furnish the property with essential amenities including Wi-Fi, basic kitchen supplies, linens, and local guidebooks highlighting nearby attractions like the Drumright Historical Museum and oil boom history. Create your Airbnb listing with professional photos, competitive pricing ($50-75/night based on local market), and detailed descriptions emphasizing the town's oil heritage and Route 66 connection. Manage the property by establishing cleaning protocols, installing keyless entry systems, maintaining responsive guest communication, collecting and remitting Oklahoma sales tax quarterly, and keeping detailed records for tax purposes while monitoring local regulation changes as short-term rental laws evolve.

To identify profitable short-term rental properties in Drumright, Oklahoma, focus on locations near the town center along Highway 99 and properties within walking distance of local attractions like the Drumright Historical Museum and oil heritage sites, as these areas attract business travelers and history enthusiasts. Target 2-3 bedroom single-family homes or duplexes built after 1950 with updated kitchens, reliable Wi-Fi capability, and parking, as the area serves oil industry workers and Route 66 travelers who prefer comfortable, private accommodations. Analyze pricing by researching comparable rentals in nearby Bristow and Sapulpa (20-30 miles away) to establish competitive rates between $75-120 per night, considering Drumright's smaller market size and lower cost of living compared to Tulsa metro areas. Conduct competition research using Airbnb and VRBO to identify the limited existing STR inventory in Drumright, focusing on differentiating through superior amenities or targeting underserved niches like extended-stay business travelers or oil field workers. Utilize tools like AirDNA for market analysis, Zillow and Realtor.com for property acquisition research, and local resources including the Drumright Chamber of Commerce for tourism data and Creek County economic development information to understand seasonal demand patterns driven by oil industry activity and regional tourism along the historic oil boom corridor.

To obtain an Airbnb/STR permit in Drumright, Oklahoma, contact the Drumright City Hall at 918-352-2332 or visit their office at 301 W Broadway Street to inquire about short-term rental licensing requirements, as the city may require a business license and zoning compliance verification. Submit an application form along with required documents including property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, contact information for a local property manager if you're not local, and proof of compliance with fire safety codes including smoke detectors and carbon monoxide detectors in all sleeping areas. Pay the estimated application fee of $50-150 plus annual renewal fees of approximately $100-200, though exact amounts should be confirmed with city staff. The approval timeline typically takes 2-4 weeks after submitting complete documentation, during which the city may conduct a property inspection to ensure compliance with building codes, parking requirements (typically 1-2 spaces per unit), and neighborhood compatibility standards. Drumright may also require registration with the Oklahoma Tax Commission for state lodging taxes and compliance with any homeowners association rules if applicable, so verify all local zoning restrictions as some residential areas may prohibit short-term rentals entirely.

Short-term rentals (STRs) are generally legal in Drumright, Oklahoma, as the city does not appear to have enacted specific municipal ordinances prohibiting or heavily regulating STR operations as of 2024. Oklahoma state law does not ban short-term rentals, leaving regulation primarily to local municipalities. Drumright, being a smaller city in Creek County with a population of approximately 2,900, has not implemented the comprehensive STR restrictions seen in larger Oklahoma cities like Oklahoma City or Tulsa, which have zoning limitations and registration requirements. Property owners in Drumright can typically operate STRs in residential areas, though they must still comply with general zoning laws, building codes, and safety requirements. There are no known prohibited areas specifically for STRs within city limits, and no recent major legal changes have been reported regarding STR regulation in Drumright. However, operators should verify current local ordinances with the city clerk's office and ensure compliance with state tax requirements, including collecting and remitting applicable lodging taxes to the Oklahoma Tax Commission.

The best areas for Airbnb investment in Drumright, Oklahoma include the historic downtown district near Main Street, which attracts visitors interested in the town's oil boom heritage and proximity to the Creek County Fairgrounds that hosts events throughout the year. The residential areas near Drumright High School and along Highway 99 offer good potential due to business travelers visiting local oil and gas operations, as this region remains active in energy sector activities. Properties near the Drumright Community Center and close to Bristow (just 10 miles south) can capture overflow from larger events and festivals in the area. The neighborhoods around Olive Street and the original townsite area appeal to history enthusiasts and genealogy researchers exploring Oklahoma's early 20th century oil history, while locations with easy access to Highway 16 provide convenience for travelers heading to Tulsa (about 45 minutes away) who prefer more affordable accommodations outside the city.

Airbnb properties in Drumright, Oklahoma are subject to Oklahoma state lodging tax of 5.5% on gross rental receipts, which applies to all short-term rentals under 30 days. The state tax is collected through Oklahoma's existing hotel/motel tax framework and must be remitted monthly to the Oklahoma Tax Commission by the 20th of the following month using Form 511-L. Creek County, where Drumright is located, does not impose additional county lodging taxes as of 2023. The City of Drumright does not currently have a specific municipal occupancy tax ordinance for short-term rentals, though this could change as more municipalities adopt such measures. Property owners must register with the Oklahoma Tax Commission, obtain a sales tax permit, and file monthly returns even if no tax is owed. Exemptions include rentals to permanent residents (30+ days), rentals to government employees on official business, and certain nonprofit organization stays. Airbnb may collect and remit these taxes on behalf of hosts through their platform in Oklahoma, but hosts remain ultimately responsible for compliance and should verify collection through their host dashboard.

The total cost to start an Airbnb in Drumright, Oklahoma is approximately $95,000-$115,000. Property purchase costs around $65,000-$75,000 based on median home prices in small Oklahoma towns. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchenware, and appliances. Initial setup including professional photography, listing creation, and basic renovations costs $2,000-$3,500. Permits and fees including business license, short-term rental permit, and tax registration total $300-$800. Insurance for short-term rental coverage runs $1,200-$1,800 annually. Utility deposits and connections for electricity, water, gas, internet, and cable cost $500-$800. First six months operating costs including utilities ($180/month), cleaning supplies ($50/month), maintenance reserves ($100/month), property management software ($30/month), and marketing ($50/month) total approximately $2,460. Additional considerations include potential HOA fees, property taxes, and a 10-15% contingency fund for unexpected expenses during the initial launch period.

Airbnb properties in Drumright, Oklahoma typically generate modest returns due to the town's small population of approximately 2,800 and limited tourism infrastructure, with average nightly rates ranging from $45-75 compared to Oklahoma City's $80-120 range. Properties in Drumright generally achieve 35-50% occupancy rates annually, generating gross revenues of $8,000-15,000 per year for a typical 2-3 bedroom home, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees typically consume 60-75% of gross revenue, leaving net profit margins of 25-40% or roughly $2,000-6,000 annually. Success factors in this market include proximity to Drumright's historic downtown area, competitive pricing below $65/night, targeting oil industry workers and visitors to nearby Bristow or Sapulpa, and maintaining properties that appeal to budget-conscious travelers seeking authentic small-town Oklahoma experiences. The market benefits from limited hotel options in town, forcing business travelers and family visitors to consider short-term rentals, though seasonal fluctuations tied to local events and oil industry activity can significantly impact occupancy rates throughout the year.

Based on Drumright, Oklahoma market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Properties near local attractions like the Drumright Historical Museum or close to major highways connecting to Tulsa tend to perform better, with higher-end renovated properties achieving the upper range of returns. Initial profitability usually occurs within 18-24 months of operation, factoring in startup costs, furnishing, and marketing expenses. The local oil industry heritage creates moderate demand from business travelers and tourists, though seasonal fluctuations affect occupancy rates with peak performance during spring and fall months. Properties purchased in the $80,000-$120,000 range with $15,000-$25,000 in renovation and furnishing costs typically generate $800-$1,200 monthly gross revenue, translating to net returns of $400-$700 monthly after expenses including utilities, cleaning, maintenance, insurance, and platform fees.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Drumright, Oklahoma. Local real estate agents specializing in investment properties include Drumright Realty Group and Oklahoma Investment Properties, while regional firms like Tulsa-based Airbnb Property Advisors and OKC Short-Term Rental Specialists extend services to the Drumright area. National companies such as Awning, Mashvisor, and RedAwning offer property sourcing and management services for investors seeking profitable Airbnb opportunities in smaller Oklahoma markets. Additional local services include Drumright Property Management Company and Creek County Investment Realty, both established around 2018-2020 to serve the growing short-term rental market. National platforms like Roofstock and BiggerPockets also facilitate connections with local agents and provide market analysis tools specifically for short-term rental investments in emerging markets like Drumright, which has seen increased interest due to its proximity to Tulsa and lower property acquisition costs compared to major metropolitan areas.